What is a PBID?

A PBID is a special benefit assessment district to raise funds within a specific geographic area. Funds are raised through a special assessment on real property. Property owners determine the level of services and improvements necessary to fit the needs of the commercial area. A PBID may provide:

• Enhanced Security Services
• Enhanced Maintenance Services
• Marketing of the Area and Event Production
• Small Business Training
• Parking Management
• Business Recruitment and Retention
• Advocacy: One Unified Voice Representing the Area

The International Downtown Association estimates that there are more than 1200 PBIDs throughout North America. Competition is not just between businesses anymore, but between commercial areas as well. PBIDs have an impressive track record for improving commercial areas. They have consistently reduced crime, enhanced cleanliness, and improved the business climate in cities throughout the country.

How it works

• Property owners determine the boundaries of the PBID and how much they are willing to spend to provide the services in the district.
• PBIDs provide supplemental services, over and above those provided by the city.
• To form the district, property owners paying over 50% of the total assessment must sign petitions in support of the district.
• A PBID is governed by a private nonprofit corporation made up of property owners.
• All funds raised are returned to the private nonprofit corporation governing the district, which is responsible for managing the district and delivering district services.
• PBIDS have a defined life, which cannot exceed 5 years pursuant to the PBID Law. Property owner support is required for renewal and the formation process must be followed.
• A Management District Plan spells out at a minimum the services to be provided, establishes the boundaries, the budget and the term of the district.

Why it works

A Property-based Business Improvement District (PBID) is one mechanism for a property and business owner collaborative. It is a partnership between the public and private sector organized for the improvement of a specific commercial area. The public sector cannot solve all the problems facing commercial districts today. The private sector must take the initiative. PBIDs accomplish the following:

• Help maintain, increase property values; improve sales/occupancy rates, increase community’s tax base.
• Develop a stable environment and distinct identity for a business district, improving competitiveness in region.
• Create a cleaner, safer and more attractive business district.
• Ensure a stable and predictable resource base to fund supplemental services and programs.
• Provide non-bureaucratic and innovative management of a business district.
• Respond quickly to market changes and community business district.